Investment officer reports May gains, $30M cash sourcing and rebalancing plan

The Retirement System's investment officer reported at the June 25 Board of Trustees meeting that the plan returned 2.4% for May and about 8.7% fiscal‑year‑to‑date, citing strong corporate earnings and gains in technology and AI‑related stocks.

Investment officer Mr. Henderson told trustees that domestic equities rose roughly 5% for the month and were up about 14.3% fiscal‑year‑to‑date, while the Russell 1000 advanced about 5.1% (month) and 13.6% (FYTD). International and emerging markets also contributed: emerging markets were up about 8.4% for the month and roughly 31.9% FYTD, the officer said. Fixed‑income returns were more muted, with total fixed income around 0.3% month‑to‑date and investment‑grade up roughly 0.3%.

Mr. Henderson reported the plan ended May with an approximate market value of $466 million and net cash flow of about $30 million. To meet that flow and rebalance toward policy targets, $20 million was sourced from the Russell 1000 index fund, $6 million from the MSCI EAFE (developed markets) index fund, $3 million from the Russell 2000 index fund and $1 million from the US TIPS index fund.

He also disclosed fees: about $44,000 calendar‑year‑to‑date (investment management $28,000; custodian bank $16,000) and roughly $323,000 fiscal‑year‑to‑date (breakdowns included investment consultant fees). The officer listed approximate allocations including $150 million in domestic equity, $64.9 million in developed market equity, $21 million in emerging markets, $84 million in investment‑grade bonds, $43 million in US TIPS, $42 million in high‑yield bonds, about $54.7 million in real estate and $4.7 million in legacy private equity.

Trustees voted to accept the investment officer's report by roll call. The board later recessed to enter a closed executive session.